After news reports that Li & Fung was shedding up to 70 percent of its procurement staff, the sourcing and logistics company says that isn’t true.
“We don’t respond to market rumors, however the 70% number is inaccurate,” a representative in Li & Fung’s communications department told Sourcing Journal late Friday.
What is true, is that the pandemic has added increasing pressure to its now private, still transitioning business.
COVID-19 has dramatically impacted the global retail industry and this has affected Li & Fung’s business volume. As a result, we are unfortunately having to make adjustments to our staff levels,” Li & Fung said. “We cannot disclose further details as this information is confidential.”
According to the company, the number of Li & Fung employees being made redundant globally won’t even reach 70 percent.
The company completed its privatization on March 27, with a 40 percent share of Li & Fung going to GLP, a Singapore-headquartered global logistics firm, and 60 percent remaining with the Fung family.
“We remain focused on creating the Supply Chain of the Future and we are excited to start a new chapter as a private company,” Li & Fung said.